According to the U.S. Fire Administration, there are 1.345 million incidents of fire in 2015 resulting in 3,280 deaths and 15,700 injuries. Although there is a decline in the figures, it cannot be denied that fire is a serious situation and could lead to not just loss of life but also of millions of dollars. Fire insurance is the best solution in this context.
This is where the importance of fire insurance comes in. It offers protection and coverage in case of fire damage to your home.
Fire Insurance: A great way to recover your loss
Keep in mind, those who have a mortgage on their homes must have insurance. While fires are commonly covered by homeowners insurance, it doesn’t always extend to wildfires, especially in high risk areas, so it’s important you check your homeowners policy.
But, if you rent a house, it’s optional. What you need to understand is that keeping the property insured guarantees that you can get coverage for personal belongings lost due to fire.
Think about it, a fire will destroy your home, and without insurance, you will literally be homeless, and you will have none of your belongings either.
If you rent your home, you cannot afford to go without fire insurance. Here’s why.
1. You Have Affordable Choices:
Many renters worry about the cost of insurance. So, they forgo buying it. But, renter’s insurance premium is more affordable compared to the premium to be paid by the lender.
As a renter, you can only be responsible for ensuring the contents of the home and not the home in general because your landlord’s insurance will not cover your personal belongings.
There are 15 types of fire insurances, all of them covering needs that are more suitable for you. Among these, some like standard fire insurance company are really helpful in this regard. In fact, there is a fire insurance policy that covers everything from jewelry, pictures, and artworks; better known as the valued policy.
There is also one type of fire insurance policy commands that the claim amount is determined at the market price of the damaged property (Valuable Policy) while there is another type that ensures only up to a specific amount (Specific Policy).
2. Renters Need to Have a Plan in Place for Everything:
The fire insurance policy is primarily used, well, in case of fire. But, it doesn’t stop there. In addition to fire, there are also other perils covered under this kind of insurance policy such as natural calamities, lightning, explosions, landslide, and bursting of water tank among others.
If you rent your home and something happens, that’s it. You are out on the street. An insurance policy will ensure that you do not end up homeless in the event of any type of disaster.
Just be sure to ask about this so you will know your additional coverage aside from fire.
3. Yes, You Can Customize Your Fire Insurance Policy:
Every renter has their own needs, which is different from others. Insurance companies understand this, which is why you can customize your fire insurance policy depending on your needs, demands, and legal standing in the property where you’re staying.
You can also include other perils like terrorism or loss of profit. Incidents like housebreaking, burglary, electrical breakdown, or nuclear contamination are not included as part of the insurance coverage, although you have the option to include it.
Take note that anything outside the basic insurance coverage requires additional costs. As much as you want to be protected by adding everything in your fire insurance plan, consider other insurance plans that are more suitable to your needs and current standing. National union fire insurance or others like that may be a great help in this regard.
4. It’s Not a Permanent Commitment:
As a renter, you don’t want to get caught up in long term contracts. Odds are you are renting because your situation is temporary. Your insurance can be as well.
Generally, the policy length is only good for one year. So, if you are leaving, you can cancel, and if you are staying you can renew before the end of the maturity date.
It’s vital that you take note of the policy’s expiration date and renew it before it ends. In case something happens, which we surely don’t want to happen, you might not be able to make a claim because you were unable to renew the policy.
5. Do Not Procrastinate:
There is a reason why you pay the premium every month. In case of fire, you will be able to recover. One word of advice; document the damage as soon as possible. In fact, you should:
- Take pictures of the damaged caused by fire.
- Immediately call your insurance company and notify them about what happened.
Consequently, let them know about your intention to file a claim so they can assign a Claims Adjuster to review your case.
The assigned Claims Adjuster will assess the damage and make an estimate of the amount of loss. The insurance company will review your case and issue a check to reimburse you.
Renting a home allows you all the benefits of home-ownership without the routine maintenance that comes with actually owning a home. For many, this convenience is the reason they rent. For others, renting is a temporary step before purchasing a home.
Regardless of why you rent your home, you are not immune to accidental loss–which is why you need to have a quality insurance policy to ensure you are not put on on the streets in the event of a fire.
Take some time and find a policy that suits your needs. Not to be cliche, but it’s better safe than sorry.